1. As we progress from projects to continuous processes, all of the following statements are true EXCEPT:

a. Work-in-process inventories increase in size

b. Material inputs are known with greater certainty

c. Payment systems tend to shift from piece rates to payment based on time.

d. Labor content per dollar value of the product falls

2. Projects are the preferred kind of process when we want to deliver:

a. Low cost and high customization

b. High customization in very small quantities

c. High standardization in large quantities

d. High standardization and high quality

3. All of the following are characteristic of continuous processes EXCEPT:

a. Not labor intensive

b. Switch at little or no cost from Product A to Product B

c. High investment in equipment and automation

d. Clearly defined product flow

4. One of the following statements about job shops is NOT true:

a. Machines are arranged in the order needed by the product

b. Cost is not a major concern

c. Products are made to customer order

d. Production quantities are small

5. As we progress from projects to continuous processes, day-to-day operating considerations become more important than long-term issues like capacity planning and facilities location.

True

False

6. Projects generally consist of a series of discrete steps designed to produce a unique (one-of-a-kind) item.

True

False